Computer Products Recalculates 1985 Results After Finding Errors

April 17, 1986|By Jim McNair, Business Writer

Just as the company predicted, the accounting irregularities uncovered last month by Computer Products Inc. affect 1985 earnings, dropping profits to $1.45 million from the previously reported $6.55 million.

The company, which makes power supplies and electronic instruments in Pompano Beach, learned of the accounting discrepancy in its Measurement and Control Group in late March after a company officer left the firm under suspicion of misappropriating $750,000 of the company`s money.

Keith Vreeland, chief financial officer, said there appears to be no connection between the missing money and the accounting discrepancies.

``The two appear to be completely separate events, although I must say that a lot of the accounting discrepancies were directed by the same person.``

Vreeland said that the company hopes to turn over company files to law enforcement authorities at the end of the week for investigation into the allegedly missing money. The Securities and Exchange Commission, he said, has already been notified that the company`s 1985 annual report will be late.

Earlier, Computer Products had reported earnings of $6.55 million, or 34 cents per share, on sales of $92.5 million. The revised figures are $1.45 million, or 7 cents per share, on $88.5 million in sales. In 1984, the company earned $8.74 million on $85.3 million in sales.

Company President and Chairman David C. Yoder said he is confident that the company`s reputation will help the company in its relationship with customers during the next several months.

``We believe we have identified all of the accounting irregularities and have taken the appropriate corrective steps,`` Yoder said.